Analysis of business results & financial statements · Quý 1/2026
▼▼ Declining sharply
Trailing net profit reached 127.9bn, fell 64.0bn compared with the same period last year. Key positives came from higher gross profit, lower selling expenses, and lower tax. Offsetting pressure came mainly from higher administrative expenses and lower financial income. Detailed impact is shown below:
See what is changing ↓- P/E
- 11.09x
- P/B
- 0.78x
- EPS
- 891
- BVPS
- 12,720
- ROE
- 6.6%
- ROA
- 3.2%
- Market price
- 9,880 16 Oct 2026
The current picture
What Is Changing
On a TTM 2026Q1 basis, DRC is going through a period of clear decline across multiple metrics at once — margins have been compressing consistently over multiple periods. What still needs to be determined is whether the business can find a stabilization point in the near term, or whether current pressure has not yet run its course.
Profit bridge
Vs last year · TTM
- Gross profit
- Selling expenses
- Tax
- Administrative expenses
- Financial income
Across periods
A single data point, or a trajectory?
Latest eight quarters · Quý 1/2026
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1,154.9 | 1,212.5 | 1,234.2 | 1,377.3 | 1,179.8 | 1,117.8 | 1,217.7 | 1,364.2 |
| LNST | 16.2 | 39.5 | 40.1 | 32.1 | 9.5 | 59.1 | 45.9 | 77.4 |
| Net margin | 1.40% | 3.26% | 3.25% | 2.33% | 0.80% | 5.29% | 3.77% | 5.68% |
Revenue
1,155bnNet income
16bnNet margin
1.40%Inside the statements
A closer look at what is happening inside the business
A company's statements are read with the questions that fit its type of business.
Is the profit sustainable?
Margins narrowed but earnings quality remains clean — pressure is mainly operational.
What is driving the margin?
▼Net margin narrowed to 2.57%, falling 1.4pp. The main pressure is SG&A / Revenue rose 1.9pp, outweighing the improvement in Gross margin rose 0.4pp (in addition, Other profit / Revenue rose 0.0pp added support while Net financial result / Revenue fell 0.3pp remained a drag).
The pressure comes from core operations — this is a concerning type of decline, not a one-off movement.
- Net Margin
- 2.57% −1.4pp
- Gross Margin
- 14.69% +0.4pp
- SG&A / Revenue
- 11.04% +1.9pp
TTM YoY · 2025Q1 -> 2026Q1
Is capital being used efficiently?
Capital efficiency is declining — check whether the drag is from margins or turnover.
Is capital being deployed efficiently?
▼▼ROIC fell to 4.36%, losing 2.9pp. That translates to 4.36 in after-tax operating profit for every 100 units of operating capital. Both NOPAT margin narrowed 1.4pp and capital turnover fell 0.14x, while invested capital rose by 282bn — pressure came from both operational efficiency and asset efficiency.
Pressure came from the margin side — core operations are weakening, not just a temporary asset-management issue.
ROIC is currently 4.36% — below the typical cost-of-capital threshold; worth tracking whether upcoming periods can rise above this level.
Balance Sheet
●ROIC declined — the balance sheet shows how capital is being deployed. Capital structure is conservative with low leverage — liabilities at 1.15x equity, net debt at 0.47x equity.
Inventory ended the period at 1,400.5bn, roughly 33.5% of total assets.
Over the last 12 months, working capital released 0.0bn of cash.
Working Capital Efficiency
▼Cash conversion cycle lengthened by 15.0 days versus the same period last year. The main moves came from DIO rose 3.5 days, DSO rose 19.1 days, and DPO rose 7.5 days.
Working capital cycle lengthened mainly due to slower receivables collection — receivables quality needs monitoring.
CCC stands at 120.5 days, suggesting that working capital remains tied up for a relatively long operating cycle.
DSO increased by +19.1 days, pointing to slower receivables turnover.
DuPont
What drives ROE?
ROE fell from 10.0% to 6.6% — net margin weakened the most, though leverage still provided support.
Is financial risk significant?
Financial risk is low — leverage is safe, both CFO and FCF are positive.
Leverage & Liquidity
▼▼Leverage warrants monitoring, with net debt / equity at 0.47x and interest coverage only at 1.99x.
At present, short-term debt accounts for 88.7% of total debt, cash equals 5.6% of debt, and total debt stands at 980.2bn.
Interest coverage is 1.99x, leaving limited room to absorb financing costs.
Short-term debt accounts for 88.7% of total debt, raising near-term refinancing needs.
- Net Debt / Equity
- 0.47x −0.07x
- Interest Coverage
- 1.99x −1.34x
- Cash / Debt
- 5.6% +2.5pp
- Short-term Debt / Total Debt
- 88.7% +2.3pp
TTM YoY · 2025Q1 -> 2026Q1
Cash Flow
▲▲With safe leverage noted above, cash flow below shows the self-funding capacity. Operating cash flow reached 135.4bn in 2025, against investing cash flow of -37.3bn.
Post-investment cash flow was positive +98.1bn. Financing cash flow was negative +110.9bn.
CFO / net income was 1,81 lần.
After spending +53.0bn on fixed-asset investment, the business generated trailing free cash flow of +178.9bn.
In summary
Research synthesis
What this reporting period is showing
The business is showing a few weaker signals, but the current magnitude is not yet clear enough to conclude that this is a broader weakening phase. The brighter spot is earnings conversion is confirmed, with CFO/NI at 1.81x. The main risk still sits in capital efficiency remains weak, with ROIC at 4.4%.
- Improvement: earnings conversion looks more confirmed, with CFO / net income at 1.81x.
- Key risk: Capital efficiency remains weak.
What to verify next
Questions for the next period
Durability of revenue growth after the current +2,0% YoY pace.
Ability to hold margins around the current 2.57% level.
Cash-flow quality, with operating cash flow currently at 135.4bn in 2025.
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